Although shareholders may generally know they have certain rights provided by federal law, they may be unclear on what constitutes securities fraud. In the broadest sense, the term covers any deceptive practice used to induce investors into buying or selling stocks or commodities.
The agency dedicated to enforcement and investigations of securities fraud allegations is the Financial Industry Regulatory Authority. This agency’s findings can be a great asset in uncovering large schemes. The broker is now banned from working in Colorado’s securities industry.
In a recent example, FINRA has banned a Colorado broker in an alleged $1.5 million scandal involving unauthorized trades. He used his clients’ money without their authorization or prior knowledge.
Securities Fraud Examples on a Smaller Scale
This story involves a large sum. But there are smaller scale examples of securities fraud. In fact, something as simple as a breach of a fiduciary duty or a conflict of interest may give rise to securities litigation between an investor and a broker or other financial professional.
Our law firm is committed to helping investors regain the compensation they were defrauded. We rely on our experience to provide strategic counsel about your bottom line. For example, there may be strategic reasons for choosing a forum, such as arbitration over a civil jury trial. The arbitrator in a securities fraud case likely is familiar with the law, whereas a jury in a civil trial would not be. If you have cheated out of your investment money by unlawful means, make sure you consult with an experienced securities lawyer about your legal options.
Source: Coin Geek, “Colorado crypto broker scammed $1.5 million, banned by U.S. regulators,” Steve Kaaru, March 26, 2019